India to Auction More Oil and Gas Blocks by 2010 and Introduce Open-Acreage Bidding System
Posted on July 31, 2008 at 01:00 AM EDT
BANGALORE, INDIA--July 31, 2008--Researched by Industrial Info Resources (Sugar Land, Texas)--India's Directorate General of Hydrocarbons has announced that it is compiling a national data repository comprising geological information of the country's basins and fields. The goal is to ensure integrity and transparency both before and during the process of exploration. The directorate plans to auction coal bed methane (CBM) blocks later this year or early next year, as CBM is being looked upon as an alternative way of reducing India's major energy deficit. Three rounds of international CBM auctions have been held so far, attracting bids from companies such as Santos (Adelaide, Australia) and BP PLC ( NYSE:BP ) (London). India has signed a memorandum of understanding with Western Australia whereby the countries will work together in CBM, liquefied natural gas, and oil and gas exploration and production. Australia's Arrow Energy Limited (ASX:AOE) (Brisbane, Queensland) already has three CBM blocks in India. Gas production from a CBM block has already begun but the maximum effects are expected to be visible when CBM blocks with Oil and Natural Gas Commission (ONGC) (Dehradun, Uttarakhand) and Reliance Industries Limited (BOM:500325) (Mumbai) go into production next year.